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Six Tech Stocks Worth Their Weight in Cash- Barron's

by: SA Editor Rachael Granby October 12, 2008 | about stocks: BBY / GSIG / IPAS / NAPS / OPXT / RNWK / TRID / TSCM / TUNE    
Rachael Granby

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Rachael Granby

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As the credit crisis continues, and as markets take some of the worst hits in years, Barron's Tiernan Ray picks six tech companies that are cash-rich and whose business are likely to hold up even in a softening economy.

The six stocks have market values between around $100M and $10B, market capitalizations less than two times their net cash and equivalents, and have boosted their net cash over four successive quarters.

The largest of the six is RealNetworks (RNWK), followed by Opnext (OPXT), TheStreet.com (TSCM), Microtune (TUNE), GSI Group (GSIG) and iPass (IPAS) is the smallest.

Of course, cash-rich tech firms could also become acquisition targets, as Napster (NAPS) did this summer with a $121M bid from Best Buy (BBY).

Trading at or near cash is no guarantee of success (case in point: Trident Microsystems (TRID)), and earnings estimates for the tech sector have been deteriorating, but by paying little more than what a company's cash assets are worth, investors should feel fairly comfortable in their positions.

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This article has 3 comments:

  •  
    Oct 12 04:04 PM
    Agree that TSCM is a buy here (profitable and close to cash), but it's a media company, not a tech stock.
    Reply
  •  
    Oct 15 07:56 AM
    check
    cntf cash per share is 1.7 current price 0.9
    eps 0.32

    kong cash per share is 3.35 price 3

    nine cash per share is 3 price now is 1.4

    xfml cash per shar is 1.4 price now is 1.1
    hray
    lton
    Reply
  •  
    Oct 20 02:45 PM
    I don't see any of them being a "must buy". So they will retain their value, this makes them a "safe buy". Now is the time to be searching for the "bargain buys", not those which will maintain their value. I'm looking for the stock that lost 1/2 it's value and WILL rebound.

    If you want to invest safely, invest in a CD.
    Reply
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